In the context of consumer choice theory, utility means:
a. usefulness.
b. satisfaction.
c. practicality.
d. boring.
e. action.
QUESTION 2Assume the short-run average total cost for a perfectly competitive industry increases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
QUESTION 3The ability of a good to satisfy a want refers to its:
a. usefulness.
b. utility.
c. worthiness.
d. necessity.
QUESTION 4Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
QUESTION 5Utility is most closely defined by which of the following terms?
a. Useful.
b. Worthiness.
c. Necessary.
d. Satisfaction.
QUESTION 6Assume the short-run average total cost for a perfectly competitive industry remains constant as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
QUESTION 7What happens to total revenue given a price increase and demand is inelastic? Why?
QUESTION 8If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run:
a. price will rise.
b. the firm's per-unit cost will increase.
c. the firm's per-unit cost will fall.
d. the market price will return to its initial position.
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